Abdul Corporation purchased 400 common shares of Sigma Inc. for trading purposes for $13,200 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.75 per share. At year end, December 31, Sigma shares were selling for $35.50 per share. In late January, Abdul sold the Sigma shares for $34.95 per share. Prepare Abdul Corporation's journal entries to record
(a) The purchase of the investment,
(b) The dividends received,
(c) The fair value adjustment at December 31, and
(d) The January sale of the investment.

  • CreatedSeptember 18, 2015
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